91% of APJ consumers remain loyal to brands that personalize the experience Brands investing in customer engagement well positioned to weather economic turbulence: Twilio study

Twilio’s fourth annual State of Customer Engagement Report reveals that investments in customer engagement increase brand resilience by increasing revenue and improving customer retention and loyalty

Consumers’ patience with a poor digital experience is waning – 73% of consumers in Asia and the Pacific and Japan (APJ) say they will stop using brands that don’t personalize their experience

SINGAPORE, April 3, 2023 /PRNewswire/ — Research by Twilio (NYSE: TWLO), the customer engagement platform that powers real-time personalized experiences for today’s leading brands, shows that investments in customer engagement continue to drive revenue growth and help companies meet their financial goals of economic difficulties. Twilio’s fourth annual State of Customer Engagement Report reveals that amid limited resources and economic uncertainty, investments in digital customer engagement increased brands’ revenue by an average of 90%, up from 70% last year globally.

The data also illustrates how customer engagement contributes to business sustainability – globally, six in 10 companies report that investments in digital customer engagement have improved their ability to meet changing customer needs and helped increase customer retention , conversion and long-term loyalty.

Twilio’s State of Customer Engagement report is based on a survey of more than 4,700 B2C leaders in key sectors worldwide, plus a parallel survey of over 6,000 global consumers. It also includes data from Twilio’s proprietary customer engagement platform, including Twilio Segment, the leading customer data platform (CDP) for 2021 market share according to IDC[1].The report includes findings from Hong Kong SAR, India, Indonesia, Malaysia, The Philippinesand Singapore.

Twilio’s 2023 study explores key consumer trends around personalization, data privacy and trust that highlight opportunities for brands to directly increase customer lifetime value. For example, the research found that APJ consumer patience is low — 73% will stop using brands if their experience isn’t personalized — and brands continue to overestimate how well they meet those expectations, with a 27 percentage point difference in the personalization experience between B2C and consumer perceptions.

Key user insights in Asia and the Pacific and Japan (APJ) include:

  • Consumer frustration with inconsistent digital experiences is growing. 53% of APJ users report being frustrated with their interactions in the past year, up from 51% the year before.
  • Real-time precision personalization improves customer lifetime value. 91% of consumers in the region say personalized experiences increase their brand loyalty. Consumers in APJ also spend 24% more on brands they personalize – more than the global average of 21%.
  • Consumer trust is lower than brands realize. Consumers at APJ want more control over their customer data, with “identity data” a top priority. Meanwhile, 44% of consumers in APJ stopped buying from a brand after their expectations of data privacy and transparency were not met, exceeding the global average of 41%.

As part of the research, Twilio divided B2C companies into three categories based on their customer engagement maturity: Customer Engagement Leaders, Lead Makers, and Laggards. Customer engagement leaders—companies that have the most mature use of personalization, first-party data, and the highest level of digital engagement—report huge benefits compared to those with less advanced customer engagement strategies. These include significantly increased revenue growth, customer retention and customer conversion rates, along with a greater likelihood of meeting the company’s financial goals. Worldwide:

  • 82% of customer engagement leaders met or exceeded their company’s 2022 financial goals, compared to 62% of customer engagement laggards.
  • 40% of engagement leaders report much higher customer retention rates compared to previous years, compared to 12% of laggards.
  • 41% of engagement leaders also reported much higher customer conversion rates compared to previous years, versus 15% of laggards.

“In this macroeconomic climate, every business is looking to do more with less,” said Joyce Kim, Chief Marketing Officer at Twilio. “This research echoes what we’re hearing across our customer base, which is that when brands use first-hand data to personalize customer engagement, it saves companies significant marketing spend and increases lifetime value.” For brands facing growing headwinds, that means ROI today.”

Twilio’s 2023 State of User Engagement Report is available as an interactive web report with data available in four regions and 18 countries and as a comprehensive downloadable white paper. Both can be found at www.twilio.com/state-of-customer-engagement

About Twilio

Today’s leading companies trust Twilio’s Customer Engagement Platform (CEP) to build direct, personalized relationships with their customers anywhere in the world. Twilio enables companies to use communications and data to add intelligence and security to every step of the customer journey, from sales to marketing to growth, customer service and many other engagement use cases in an agile, programmatic way. In 180 countries, millions of developers and hundreds of thousands of businesses use Twilio to create magical experiences for their customers. For more information about Twilio (NYSE: TWLO ), visit: www.twilio.com.

[1] IDC Worldwide Customer Data Platform Market Shares 2021 Stellar CDP Growth Proves Value of Unified CX Data – 2022 July 2022


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